Other Balance Sheet Information

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 8. Other Balance Sheet Information

Components of selected captions in the accompanying balance sheets consist of:

Prepaid expenses:	September 30, 2012			December 31, 2011
Prepaid insurance	$	29,500		$	16,707
Other		654			416
Prepaid expenses	$	30,154		$	17,123
Property and equipment:
Computers and office furniture, fixtures and equipment	$	87,370		$	87,370
Machinery and equipment		104,490			99,015
Less: accumulated depreciation		(165,075	)		(150,951	)
Property and equipment, net	$	26,785		$	35,434

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The Company’s property and equipment at September 30, 2012 and 2011 consisted of machinery and equipment with estimated useful lives of one to three years.

Depreciation expense for the three and nine months ended September 30, 2012 was $4,097 and $14,124, respectively. Depreciation expense for the three and nine months ended September 30, 2011 was $4,864 and $22,494, respectively.

Expenditures for repairs and maintenance are expensed as incurred.